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With a closing P/E ratio over 17 and a VIX under 11, Deutsche Bank's David Bianco is sticking with his cautious call for the summer. Their preferred measure of equity market emotions is the price-to-earnings ratio divided by the VIX. As of Friday's close, this sentiment measure has never been higher and is in extreme "Mania" phase. Deutsche's advice to all the summertime-'chasers' - "wait for a better entry."
Via Deutsche Bank,
We find the current PEs demanding.
S&P median PE at 18.9, non-financial PE at 18.1 and trailing PE at 17.5 are all elevated vs. history.
And the P/E to VIX ratio suggests we have shifted from compacency into mania...
at http://www.zerohedge.com/news/2014-06-09/deutsche-warns-markets-have-left-complacency-phase-have-entered-full-blown-mania
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